EPFO Update – Most private companies across the country deduct PF for their employees’ savings. The Central Government also provides interest on the deposited PF amount every financial year. But did you know that the government also provides some special benefits for PF employees?
Not only this, but the government also provides a free security cover in difficult times. EPFO not only provides its members with the benefits of deposits and pension, but also life insurance in case of emergency. EPFO also provides life insurance up to Rs. 7 lakh in difficult times. This facility is provided under the EDLI scheme. This scheme is like a lifeline for PF employees. Employees get this security cover without any expense.
Security cover without any expense
EDLI scheme is a boon for PF employees. Employees do not have to spend a single rupee from their own pocket for this scheme. The entire premium for the insurance provided under the EDLI scheme is also paid by your company or employer.
As soon as an employee’s PF account is opened, they are automatically enrolled in the insurance scheme. The PF employee does not need to fill out a separate form or rush to apply. The primary purpose of the EDLI scheme is to protect the family of an employee from sudden financial crises if the employee is unwell while on the job.
Learn how an income of Rs 7 lakh is determined.d
PF employees may be wondering how the insurance amount is determined. This calculation is based entirely on the employee’s basic salary. According to the rules, the previous year’s basic salary and DA are used as the basis.
The insurance cover amount is up to 35 times the average salary, including a bonus of up to Rs 1.75 lakh. The EPFO has set a maximum salary limit of Rs 15,000 for this calculation. Multiplying Rs 15,000 by 35 times brings the total amount to Rs 5.25 lakh. Adding a bonus of Rs 1.75 lakh brings the total amount to Rs 7 lakh. This is the maximum assistance available under the scheme.
Know what to do to claim?
If a PF employee dies while on the job, their nominee or legal heir can claim this amount. The process has now been simplified.
The nominee must fill out and submit EDLI Form 5 IF to the EPFO regional office. Documents such as a death certificate, Aadhaar card, bank account details, and proof of date of birth are required to accompany the claim.
Relief: EPFO has relaxed the rules, allowing the claim toremain recognisedd even if the employee has spent some time without salary (non-contributory period). The department strives to settle claims within 30 days. If there is a delay, the EPFO is required to pay 12% annual interest to the claimant.
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vipin kumar
Vipin Kumar is An experienced journalist with 8 years in the media industry, having worked with prominent news platforms including Dainik Jagran and News24. Currently serving at Timesbull.com for almost four years, dedicated to delivering truthful, transparent, and people-centric news that informs and empowers readers. Committed to transparent, ethical, and...
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